Key facts
- Panic is refunding customers for tariffs charged on Playdate gaming handhelds.
- The tariffs were imposed by the Trump administration.
- The Supreme Court ruled these tariffs illegal in February.
- Panic passed the tariffs onto customers due to low profit margins.
- Panic stated it could not afford to absorb the 19 percent tariffs.
Panic, the company behind the Playdate gaming handheld, is refunding customers who paid tariffs that were later deemed illegal. The tariffs, imposed by the Trump administration earlier this year, were ruled unlawful by the Supreme Court in February.
In an update on its help site, Panic announced it has begun receiving refunds for the tariffs it paid on imported Playdate hardware. Consequently, the company has refunded all such charges to its customers. Initially, Panic explained that its low profit margins on the Playdate prevented it from absorbing the 19 percent tariffs, leading it to pass the cost directly to consumers as a separate line item on orders.